On Tuesday, the Dow Jones Industrial Average recorded its longest losing streak since 1978, declining for the ninth consecutive session. The index fell 267.58 points (0.61%) to 43,449.90. The S&P 500 lost 0.39%, closing at 6,050.61, while the Nasdaq Composite slid 0.32% to 20,109.06.

Despite the Dow’s downturn, the broader market showed resilience. The S&P 500 remains less than 1% away from its recent high, and the Nasdaq reached a record on Monday. Driving the Dow’s losses is a rotation away from traditional economy stocks toward technology stocks, which have dominated recent market gains.

Investors are bracing for the Federal Reserve’s interest rate decision due Wednesday, with a 95% probability of a quarter-point rate cut. However, concerns persist about the Fed’s future moves, inflationary risks, and potential market bubbles. November retail sales data surpassed expectations, underscoring consumer resilience but adding to concerns that rate cuts may be unnecessary.

In global markets, Canada’s inflation dropped below the Bank of Canada’s 2% target, providing reassurance about the impact of rapid rate cuts. However, political discord weakened the Canadian dollar, hitting Covid-era lows. Brazil’s currency, the real, also faced pressure, prompting multiple central bank interventions to stabilize it.

Oil prices declined for a second day amid concerns over weakening Chinese demand and sliding equity markets.